Regular Company produces audio equipment, specifically headphones and speakers. A new CEO has just been hired and announces a new policy that if a product cannot earn a markup of at least $25$ percent, it will be dropped. The markup is computed as product gross profit divided by reported product cost.

Manufacturing overhead for year $1$ totaled $$972,000.$ Overhead is allocated to products based on direct materials cost. Data for year $1$ show the following:

Headphones Speakers

Sales revenue $ $2,187,000$ $ $2,085,900$

Direct materials $710,000910,000$

Direct labor $484,000244,000$

Required:

a$-1.$ Calculate the markup for both headphones and speakers.